I reviewed all my closed transactions for 2018. When I looked at the terms agreed to in those transactions, here is what the numbers told me:
1. Down Payment – the lowest was 4% of the sales price, the highest was 69%. Taking out the highest and lowest, the average down payment was 22.57%.
2. Interest Rate – the lowest was 3.5%. The highest was 7.0%. The average was 5.38%.
3. Amortization – the shortest term was 158 months, the longest was 381 months. Several commercial transactions were interest only, 3 or 5 years, with a balloon.
How does your note compare?
